nep-net New Economics Papers
on Network Economics
Issue of 2006‒02‒05
nineteen papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. NETSCAPE - Europe and the Evolving World City Network By Ronald Wall; Bert Van der Knaap
  2. Network competition - the co-existence of hub-and-spoke and point-to-point By Marco Alderighi; Alessandro Cento; Peter Nijkamp; Piet Rietveld
  4. Social Networks in the Boardroom By Francis Kramarz; David Thesmar
  5. Open Source in Finnish Software Companies By Arto Seppä
  6. Technology Incubators as Nodes in Knowledge Networks By Danny Soetanto; Marina Van Geenhuizen
  7. Water - Spatial Network Pricing By Yuri Yegorov
  8. Understanding urban networks through accessibility By Jianquan Cheng; Frank Le Clercq; Luca Bertolini
  9. The spatial dimensions of innovation By Anne Lorentzen
  10. Knowledge spillovers within regional networks of innovation and the contribution made by public research By Martina Kauffeld-Monz
  11. The Randstad as a Network City By Jan Ritsema van Eck; Femke Daalhuizen; Lia Van den Broek; Frank Van Oort; Otto Raspe
  12. Urban Dynamics and Networking in Coastal Cities -The case of tourism By Dimitrios Economou; Maria Vrassida
  13. Robustness of optimal inter-city railway network structure in Japan against alternative population distributions By Makoto Okumura; Makoto Tsukai
  14. New Economic Geography, Empirics, and Regional Policy By Joeri Gorter; Albert Van der Horst
  15. Spatial externality of railway service improvement - To understand the Japanese inter-regional transportation service improvements By Makoto Tsukai; Makoto Okumura
  16. Boundaryless Management - Creating, transforming and using knowledge in inter-organizational collaboration. A literature review By Blomberg, Jesper; Werr, Andreas
  17. proximity conflict's resolution and innovation networks of French biotechnology SMe's By Delphine Gallaud
  18. Networks in Berlin’s Music Industry – A Spatial Analysis By Marco Mundelius; Wencke Hertzsch
  19. The case for industrial policy : a critical survey By Saggi, Kamal; Pack, Howard

  1. By: Ronald Wall; Bert Van der Knaap
    Abstract: This paper focuses on the interdependencies between firms and spatial networks (nodes and linkages) at different European spatial scales. The paper is structured into two parts: (1) Conceptualization; (2) Empirical Analysis. Part (1) consists of three chapters conceptualizing various scales of city-firm networks. The first concerns the macro scale, discussing the development of specific networks within the globalization process. The second analyses the mezzo level of European networks and their national to supranational transformation. On the micro level Rotterdam's internal and external network is conceptualized. Part (2) empirically reveals the European city-firm network at mezzo and micro scales, based on datasets including the top 100 EU multinationals, their affilates/subsidiaries and the city locations of all these firms. Chapter one analyses the mezzo scale, showing various hierarchies of city-firm interdependencies, for the sectors of manufacturing, trade, information, public services and basic materials. The second chapter analyses the relative position of Rotterdam within this interscalar network, by specifically investigating its internal and external city-firm networks. From this Rotterdam's existing strengths and weakenesses, and possible future implications are determined.
    Date: 2005–08
  2. By: Marco Alderighi; Alessandro Cento; Peter Nijkamp; Piet Rietveld
    Abstract: Airlines network choices are analysed to describe the co-existence of alternative business models: the full service model based on the hub-and-spoke (HS) system and the low cost model based on point-to-point (PP) system. The analysis is carried on both theoretically and empirically. In the theoretical part, we show that the rise of the low costs business model can be the consequence of a simple two-player game. When two carriers compete in designing their network configurations (HS or PP), asymmetric equilibria emerge, i.e. one carrier will choose HS and the other PP. Full service carriers are stuck to a HS configuration to serve intercontinental destinations, whilst non-flag carriers implement a point-to-point network. In the second part, the recent network evolution in Europe is empirically evaluated by means of different spatial measures of concentration, such as Gini index, Freeman centrality index and Bonacich centrality. In addition, we also provide an airline-specific measure of centrality based on scheduled time comparison of direct to one-stop services. Spatial measures of centrality capture a reduction of centrality in non-flag carriers and small changes in the network centrality of flag carriers. Indeed, the time-based measure of centrality suggests an increase of centrality of flag carriers.
    Date: 2005–08
  3. By: Rafael Moner Colonques (Universitat de València); Ricardo Flores Fillol (Universidad Autónoma de Barcelona)
    Abstract: The present paper develops a simple model of a network structure to analyze the profitability and the strategic effects of airline alliances in which two complementary alliances, following different paths, may be formed to serve a certain city-pair market. We examine whether airlines that employ the same hub have an incentive to create an alliance, analyze the effects on carriers outside the alliance and study how fares are affected. We conclude that complementary alliances are profitable for a sufficient degree of product differentiation, which implies that competition intensity is low; that an alliance hurts the outsiders; and that fares will decrease. These findings remain valid to the introduction of more competition in the form of a direct non-stop flight. Our results provide a very simple testable implication that relies on demand parameters that measure the degree of product differentiation, and our findings are consistent with some of the observed facts in the industry.
    Keywords: complementary airline alliances, substitute trips, product differentiation
    Date: 2005–04
  4. By: Francis Kramarz (CREST-INSEE, CEPR and IZA Bonn); David Thesmar (HEC and CEPR)
    Abstract: This paper provides empirical evidence consistent with the facts that (1) social networks may strongly affect board composition and (2) social networks may be detrimental to corporate governance. Our empirical investigation relies on a unique dataset on executives and outside directors of corporations listed on the Paris stock exchange over the 1992-2003 period. This data source is a matched employer employee dataset providing both detailed information on directors/CEOs and information on the firm employing them. We first find a very strong and robust correlation between the CEO's network and that of his directors. Networks of former high ranking civil servants are the most active in shaping board composition. Our identification strategy takes into account (1) differences in unobserved directors' "abilities" and (2) the unobserved propensity of firms to hire directors from particular networks, irrespective of the CEO's identity. We then show that the governance of firms run by former civil servants is relatively worse on many dimensions. Former civil servants are less likely to leave their CEO job when their firm performs badly. Secondly, CEOs who are former bureaucrats are more likely to accumulate directorships, and the more they do, the less profitable is the firm they run. Thirdly, the value created by acquisitions made by former bureaucrats is lower. All in all, these firms are less profitable on average.
    Keywords: networks, corporate governance
    JEL: J40 L20 Z13
    Date: 2006–01
  5. By: Arto Seppä
    Abstract: This paper explores survey data focusing on open source software supply collected from 170 Finnish software firms using descriptive statistical analysis. The first half of the report contains general data about software companies and the differences between proprietary and open source firms. The second half focuses on open source firms. A subject of analysis are copyrights, products and services supply, the firms’ relationships with the open source community, and their views on opportunities and obstacles in business. OSS firms tend to be younger and are generally smaller in terms of revenue and personnel than non-OSS firms. In addition, they display more negative attitudes towards patenting. Licensing has much less impact on their sales as compared to non-OSS firms. The majority of open source products are released under the copyleft license. Network effects are seen as biggest obstacles for successful business in the open source field.
    Keywords: software industry, open source software, licensing, Finland
    JEL: L86 O33 O34
    Date: 2006–01–25
  6. By: Danny Soetanto; Marina Van Geenhuizen
    Abstract: It is widely accepted that new knowledge underpinned innovation and growth influences economic activities. Economic agents rely not only on their own knowledge but also knowledge from others, whether it be codified and ’transferred via ICT’ or in tacit form. Moreover, it has long been argued that the acquisition of latter type of knowledge is influenced by geographic proximity. Based on this argument, it follows that the part firms’ supply of knowledge depends on how close, in terms of physical distance, to other firms, suppliers, customers, and research institutions, they are located. They are all can be categorize as a pool of knowledge that important for the firms’ growth and innovation capacity. Today, we witness many initiatives from policy makers around the world to compete in an increasingly technology- driven global economy through the establishing of technology incubators. Technology incubators can be conceived as organizations and/or facilities to enhance high-technology firm establishment and survival. Mostly they are located near the university or research center. There are many success stories on the contribution of incubators to the regional growth. At the same time, technology incubators have been widely criticized in the academic literature when judged in terms of regional innovation and knowledge development. The critics include the relying on an outdated, linear, model of innovation, which assumes that knowledge can be transferred directly from university to firms. However, innovation is now widely recognized as a complex non-linear process involving feedback loops and the creation of synergies through a diverse range of knowledge networks. Therefore, our understanding about knowledge spillover processes connected with incubator is yet poor. Very little is known about the mechanisms of knowledge exchange and spillover initiated by incubator and their role in supporting the growth of the firm. In this study we draw on the current body of literature, mainly agglomeration theories, and use the concepts of tacit knowledge and context to understand how knowledge spillovers actually take place. Our objective is to build a conceptual framework that describes how technology incubators operate as a mediator of knowledge for their tenants. In addition, based on empirical data of high-technology start-ups at TU Delft (The Netherlands), this study tests the proposition that not only geographic proximity to the university, but also that relations with other firms, particularly customers and suppliers matters. We also consider the function of ICT in shaping the new role of technology incubators in providing knowledge support. By explicitly analyzing the knowledge spillovers and mediation role offered by technology incubators, we seek to open up the ‘black box’ of the incubation process as a source of learning and gaining knowledge resources. We conclude the paper with a few recommendations for policymaking and further research.
    Date: 2005–08
  7. By: Yuri Yegorov
    Abstract: The paper addresses an important issue of pricing mechanisms is spatially distributed systems with losses, with an application to water supply system. When losses from delivery are high, the asymmetry of spatial location of consumers plays an important role, which is captured by the model. The goal is to compare the efficiency from alternative market structures for water supply. The model can be applied for channels aimed on water redistribution. In particular, the model can be relevant for analysing different market structures, equilibrium water pricing and efficiency for the planned channels. Potential application can be planned channel between river Ebro (Spain) and communities Valencia and Murcia. While this paper is purely theoretical, it addresses the issues that are still little understood at administrative level. Water market as described is a necessity, but it will not emerge spontaneously and it requires appropriate legislative preparation. Mathematical model is designed in terms of densities and flows of corresponding economic variables.
    Date: 2005–08
  8. By: Jianquan Cheng; Frank Le Clercq; Luca Bertolini
    Abstract: The question to be investigated in the paper is how to characterize urban networks, taking both place-bound activities and (quality of) transport networks into account. The description should help formulate planning questions about the development of urban networks. Urban networks can morphologically be characterized as concentrations of land uses in a geographical area. Beyond this morphological description, places in the area can also be characterized by the amount and diversity of activities to be accessed by means of a physical transport network. So, each place can be valued in terms of opportunities within reach, depending on its links to the transport network, the attractiveness of activities within given travel time or costs, and spatial interaction with other places. The changes of activities at one place (e.g. amount of workers or jobs) can thus, in combination with changes in the transport network (e.g. travel speeds), influence the position of places elsewhere because of competition between places. The process of influence will be spatially diffused further. It indicates that spatial competition is a hidden determinant of an urban network. The paper will illustrate these different components of the urban network for the northern part of the Randstad Holland conurbation (the greater Amsterdam area) by means of different accessibility measures. The comparisons between the patterns of two urban networks (morphological and opportunity based, or ‘virtual’) can help explore the changing urban network, giving rise to planning questions such as: -what should be the planning aim for urban networks: making places more homogenous, more diverse or rather make them subject to (controlled) competitive developments? -improvements in the transport system may have more or less exogenous impacts on the competitive position of urban places. How should these impacts be acknowledged in transport planning? -are comprehensive planned (and controlled) interventions thinkable in urban networks, or are urban networks rather the outcome of adaptively evolving, and necessarily partial planning interventions, as those responding to traffic congestion, the need for urban expansion, changes in location preferences, etc.? Answers to these questions will be tentatively addressed to formulate a planning research agenda for urban networks.
    Date: 2005–08
  9. By: Anne Lorentzen
    Abstract: The paper discusseses the spatial dimensions of innovation in Polish manufacturing companies. The conceptual framework of the paper is an understanding of social networks as a potential resource of the company, whether they are internal or external. Whether the company benefits from the potential resources attached to the network depends on the capabilities characterising the firm in terms of qualifications, organisational characteristics and attitude towards employees and towards other firms. This again is not only determined by personal characteristics of the management and staff, but also by the common perceptions, and the institutional infrastructure prevailing in the (local) society. In Poland the latter is closely connected with the process of transition since 1990. The paper reports from a study among Polish manufacturing companies. It categorises the types of innovation prevailing in the companies and detects the role of networks in the innovation process of the companies. To what extend do the companies draw on external networks, on what points of the innovation process are the networks involved, what kind of networks are involved, and not least, what are the spatial characteristics of the networks (local, national international). Finally how can the network strategy of the companies be explained? What factors seem to determine an active involvement of networks and what other factors seem to explain a self-sufficient strategy of innovation? What is the spatial extension of the networks, and are there systematic differences in the spatial extension of the networks? Does the transitional situation of the Polish society seem to favour certain strategies of innovation?
    Date: 2005–08
  10. By: Martina Kauffeld-Monz
    Abstract: Usually, analyses of knowledge spillovers, if not relying on aggregated data, are based either on surveys conducted with enterprises or on surveys conducted with research establishments. Comparative case studies on micro level that include both groups are rather the exception. Therefore the knowledge transfer mostly can be illustrated just for one of these groups. Moreover knowledge and information rarely are differentiated. The set of data used in this paper allows to overcome these weaknesses. Based on 23 innovation networks located in the eastern part of Germany, the knowledge and information transfer between almost 700 participants, which interacted during a period of 5 years, can be observed. Following the pattern of regional systems of innovation (RIS) within the dataset the distinction of certain groups of participants is arranged (e.g. manufacturing enterprises, service enterprises, universities, non-university research establishments). Their uniform and common reference system - the respective regional innovation network – can be seen as additional quality of the data. The first part of the paper focuses on the determinants of knowledge spillovers within these innovation networks. It is analyzed, in what respect the co-operation experiences and in particular the network experience of the participants have a relevance regarding the knowledge transfer. Beyond that it is examined whether network characteristics (e.g. the coherence of the network on the whole; strength of ties in detail) affect the knowledge transfer. It is also examined whether intensive contacts affect only the transfer of knowledge, or whether the intensity of contact equally shape the information flow. Finally it is analysed, if division of labour is connected with the range of knowledge transfer. In the second part of the paper empirical results are presented that demonstrate the central role played by public research institutions in the process of knowledge transfer. The results indicate that universities are adding most information and most knowledge within the networked process of innovation. The winners of knowledge exchange – considering absolute as well as relative profits – are the manufacturing enterprises. Further the results confirm the assumption that public research holds an “antenna function” (boundary spanning function) for the enterprises due to its integration into the international science community.
    Date: 2005–08
  11. By: Jan Ritsema van Eck; Femke Daalhuizen; Lia Van den Broek; Frank Van Oort; Otto Raspe
    Abstract: Randstad Holland, the most urbanised area in the western part of the Netherlands, is one of the seven World Cities that were described in Peter Halls famous study of that name. World cities are those cities which have the highest level (in terms of both quantity and quality) of internationally oriented activities. In this ranking of world cities, the Randstad is often mentioned as an example of a polycentric metropolis. But does the Randstad function as one world city, rather than a conglomerate of medium-sized urban regions in close proximity to each other? The network city is supposed to be more than the sum of the constituent urban regions. This implies not only specialisation between these urban regions, but also complementarity and, as a result of this, a high quality (metropolitan) environment for residents, visitors and business. Clearly, the four main urban regions of the Randstad show some degree of functional specialisation. In this paper, the main focus will be on the complementarity. We propose to measure complementarity by analysing flows of people, goods and/or information, specifically focussing on the asymmetric flows, against the background of functional specialisation. Some results are presented for the Randstad Holland as well as some other polycentric urban networks, which are discussed in the context of the debate about the Randstad as a Network City.
    Date: 2005–08
  12. By: Dimitrios Economou; Maria Vrassida
    Abstract: Traditionally coastal cities had a role as trading ports or gates of entry connecting the hinterland other parts of the world or the country, and acting as points of departure or arrival for goods and people. Trade and industry, were the spine of the economy for many years and a network was created between ports and coastal cities in order to move people (workforce), goods, and materials. Tourism is a dynamic spontaneous phenomenon, which creates opportunities for many coastal cities to participate in a different network of exchange. Tourism is considered an activity that does not create networks in the traditional sense but as mobility increases information and familiarity could pose as a new kind of connection between coastal cities. This paper aims to explore the structure and dynamics of such a network at an inter-intra regional level. The focus is on coastal cities since they are very popular tourism destinations and they account for the majority of visits in Europe. Reference will be made to the Greek middle size coastal cities since many of their traditional activities are degrading, they already attract a large number of visitors and they provide the opportunity for regeneration through tourism. The paper will be based on a questionnaire survey of visitors conducted during the summer months (June-August 2003) in Volos a middle size coastal city in Greece. The questionnaire is part of a broader survey of tourism in Volos aiming to explore tourism characteristics, flows and to evaluate the tourism product of the city. This network relationship will be examined in terms of complementary and competition and the impacts on city-region relations. Finally the policy implications and the potential for expanding and planning this network in order to contribute and promote sustainable development of coastal cities will be explored.
    Date: 2005–08
  13. By: Makoto Okumura; Makoto Tsukai
    Abstract: It takes long time and huge amount of money to construct inter-city railway network. Careful demand forecasting and rational service planning are therefore required. However, long ranged demand forecasting is always facing to unintended change of regional population or change of the service level of competing transportation modes such as airline and inter-city express bus. Those changes sometimes resulted in severe decrease of demand for the constructed railway lines and discussion of abolishment of train service occurs. In order to avoid such tragedy, we want to build a robust network plan not vulnerable for the changes in forecasting conditions. This paper discusses the robustness of optimal inter-city railway network structure in Japan against alternative population distributions. Genetic Algorithm is applied to find best mixture of maximum operation speed category and number of daily train service for each link, which maximize the total consumer surplus of inter-city railway passengers. Consumer surplus is assessed by a gravity demand model considering service level along several routes for each OD pair. Travel time calculated by allocated link speed category, allocated train frequency, and estimated fare regressed by travel speed, will be summarized as route service level via ML route choice model parameters. In the GA, we consider a chromosome consists of two parts; speed category of 275 links and relative operation distance of trains in those links. Besides the real distribution of population in 197 Japanese local areas in the year of 1995, we set four other hypothetic population distributions; two of them concentrate in megalopolises like Tokyo, others disperse along geographically remote areas. We first obtain network structures optimized by the GA for each population setting. Speed category allocation will be compared for the five network plans. Secondly, we calculate total consumer surplus of each network plan under the different population settings and discuss the vulnerability of those plans. Thirdly, we optimize train operation plans for different population settings under the given speed category arrangements. The results shows that spatial arrangement of high speed railway service in 1995 keeps optimality for wide range of population settings, if we adjust number of trains according to alternative population distribution.
    Date: 2005–08
  14. By: Joeri Gorter; Albert Van der Horst
    Abstract: There are doubts about the effectiveness of regional policy. Well known are the vain attempts of Italy to bridge the gap between the Mezzogiorno and the North, of Germany to bridge the gap between the Neue Länder and the West, and of the European Commission to reduce regional disparities in general. We validate a salient explanation for the lack of effectiveness: agglomeration advantages lock business activity in relatively prosperous core regions, even though wages and production costs tend to be higher there. On the basis of the `New Economic Geography' - a set of general equilibrium models that focus on location choice - in combination with descriptive statistics and econometric analysis, we conclude that the European economic geography is characterized by a network of local and stable core-periphery systems. Since regional policy tend to be insufficient to counter centripetal market forces, disparities between cores and their peripheries at a subprovincial level of regional aggregation are with us to stay. Moreover, if regional policy does have an impact, it may be adverse as some policies targeted on peripheral regions trigger location choices in favour of core regions.
    Date: 2005–08
  15. By: Makoto Tsukai; Makoto Okumura
    Abstract: Multimodal policy between railway and airlines is of importance in providing seamless transportation service to inter-regional passengers. However, it is difficult to make coordination among the railway and airline service suppliers, especially when they are fiercely competing for the share in passenger market in the target OD. Inter-regional transportation in Japan, fierce competitions are observed between Japan Railway companies and airlines, especially after the 1990 fs deregulation of the airline entrance; the number of new air service are parallel to the conventionally profitable railway service. Regardless to railway service improvements such as speed-ups, increase of frequency and special tickets of bargain fares, the number of airline passengers has been increased in the middle to long distant regions, while railway passengers continuously decreased. Such consequence would be brought by the multimodal route which has an airline link as the trunk line, and railway links as the access or egress service, considering inter-regional passenger behaviors. In other words, the improvement of railway service of middle to long distance would simultaneously and inevitably improve the short distant railway service, which can be used as the access line to airport. This phenomenon can be called the spatial externality of railway network. Spatial externality much strongly appears in railway network, comparing to airlines. If the above consideration is valid, inter-regional transportation market would not be efficient without considering the unintended multimodal use. This study purposes to clarify the existence and effects of spatial externality of railway service from investigation of longitudinal change in inter-regional transportation service and demand in Japan. The LOS of multimodal routes are calculated by the k-th shortest path algorithm which gives alternative routes to the shortest. In order to assess the LOS for each OD, the mode choice model is estimated, and passenger utilities of ODs are calculated. The results are aggregated for each distance range of ODs, and compared the LOS improvement measured by estimated utilities with the number of passengers of railway and of airlines. Implications for regional transportation administration are finally made.
    Date: 2005–08
  16. By: Blomberg, Jesper (Center for People and Organization); Werr, Andreas (Center for People and Organization)
    Abstract: Current literature on organizations often argues that firms are becoming increasingly dependent on knowledge residing outside their own boundaries requiring organizations to increase their entrepreneurial abilities and make their boundaries more flexible and permeable. This paper reviews the literature on what might be called interorganizational knowledge work. Implied in this focus is an assumption of clear organizaitonal boundaries. Rather than taking these boundaries and their importance for granted, the current review, however, aims at relativizing these boundaries. By focusing the empirical phenomenon of collaboration between individuals in different organizations, four different streams of literature with different constructions of the organizational boundary and its importance were identified: the literature on learning in alliances and joint ventures, the literature on collaboration in industrial networks, the literature on social networks and communities of practice and finally the literature on geographical clusters and innovation systems. The above four streams of the literature are reviewed with a special focus on the following three questions: 1. What is the role of (organizational) boundaries in interorganizational knowledge work? 2. What do we know about how these boundaries can be overcome? 3. What are the implications for managing interorganizational knowledge work spelled out in the literature?
    Keywords: Interorganizational collaboration; Knowledge Management; Literature review
    Date: 2006–01–27
  17. By: Delphine Gallaud
    Abstract: During the eighties, small Sme’s of the so-called « Third Italy » obtain high performances. So Italian scholars ( Baganasco, 1977, Becattini, 1979, Brusco, 1982) underline some elements that remind the English districts studied by Marshall. These works open the way to a set of theories based on the same hypothesis of the importance of geographic proximity to innovate. Between them one can list innovative milieux (Aydalot, 1986, Camagni, 1991, Maillat, 1995), national and regional systems of innovation (Lundvall, 1992, Nelson, 1993, Edquist, 1997), local productive systems (Courlet, Pecqueur, 1989), technological districts (Saxenian, 1994) and clusters (Porter, 1998). But all these works have often postulated the real importance of geographic proximity to innovate, and the one of cooperation. Besides, the part of organizational proximity has been underestimated. So our problematic is to bring to the fore what are the factors which explain the coupling of geographic and organizational proximity. Biotechnology present important specificity, especially in terms of the importance of cooperation. But conflicts become very important too in this industry, besides they may increase because of the modification of property rights. We studied innovation networks of French biotechnology Sme’s. As a first result, we brought to the fore that networks can use three kinds of global geographic proximity. Then we demonstrate that the kind of conflict’s resolution explain the coupling of geographic and organizational proximity. Cooperative resolution is coupled with geographic proximity to solve conflicts and with organizational proximity (in the similarity logic). Avoiding resolution is coupled with no geographic proximity to solve conflicts (ICT are used to solve these conflicts), and with belonging kind of organizational proximity. At last, forcing resolution is coupled with belonging but with a little of geographic proximity to solve conflicts.
    Date: 2005–08
  18. By: Marco Mundelius; Wencke Hertzsch
    Abstract: In addition to a distinct regional concentration of the branch in a few, large metropolitan areas in Germany, Berlin shows inner-city (inner-regional) concentrations of the music industry and its players linked with the value chain as well as branch-relevant institutions. By means of a written survey of companies in the media and IT industries in Berlin and Brandenburg plus expert interviews, an analysis of the Berlin music branch, regarding its spatial as well as organizational concentration and how this concentration is perceived by companies, has been carried out. A comparison of the results within the branch and with the Brandenburg region can be made on the basis of a differentiation of the media branch in the analysis. This analysis found that creative milieus are of particular importance as they perform the role of being the driving force in developing the field of music. Therefore this paper examines spillovers into this industry, as a first step of spatial concentration in terms of networks of music companies, institutions, and the specific and innovative milieu and the geographical dimension of knowledge. Furthermore, evidence has been found through the use of economic and socio-cultural indicators. Urbanization economies become especially clear (apparent) for the region in the examination of Berlin’s music industry with their intersectoral integration and cross-sectoral stimilus to settlement and formation of companies.
    Date: 2005–08
  19. By: Saggi, Kamal; Pack, Howard
    Abstract: What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on industrial policy. They also review some recent industry successes and argue that only a limited role was played by public interventions. Moreover, the recent ascendance of international industrial networks, which dominate the sectors in which less developed countries have in the past had considerable success, implies a further limitation on the potential role of industrial policies as traditionally understood. Overall, there appears to be little empirical support for an activist government policy even though market failures exist that can, in principle, justify the use of industrial policy.
    Keywords: Economic Theory & Research,ICT Policy and Strategies,Water and Industry,Industrial Management,Markets and Market Access
    Date: 2006–02–01

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